Prime Minister Mahinda Rajapaksa, who is also Finance Minister, has issued an Extraordinary Gazette suspending Sri Lankan Citizens from making payments through Outward Investment Accounts for overseas investments for three months. This order was made under the Section 22 of the Foreign Exchange Act Number 12 of 2017
a) Suspend any outward remittances other than the remittances on current transactions through Business Foreign Currency Accounts or Personal Foreign Currency Accounts held by persons resident in Sri Lanka;
b) Suspend the repatriation of funds under the migration allowance through Capital Transactions Rupee Accounts by the emigrants who have already claimed migration allowance
c) Limit the eligible migration allowance for the emigrants who are claiming the migration allowance for the first time up to a maximum of USD 30,000 ;
2. Import Restrictions
As per the provisions of the Monetary Law Act No. 58 of 1949, the Banking Act No. 30 of 1988, and the Foreign Exchange Act No. 12 of 2017, the Central Bank of Sri Lanka introduced several measures to ease the pressure on the exchange rate and prevent financial market panic due to the COVID-19 pandemic
Accordingly, licensed commercial banks and National Savings Bank are directed to adopt the following measures during the next three months, with immediate effect:
a.Sri Lanka central bank stops ‘non-essential’ imports
b.Suspend the purchase of Sri Lanka International Sovereign Bonds by licensed banks in Sri Lanka
c.Authorised Dealers of foreign exchange are only allowed to issue foreign currency notes as travel allowance up to a maximum of USD 5,000
5.Colombo stock market closed
In view of the extension of the curfew by the Government indefinitely, the Colombo Stock Exchange (CSE) will remain closed for Trading from 01st April until the curfew is lifted, the CSE said.
6.Sri Lanka suspends all restrictions on foreign currency inflows
The Cabinet has decided to suspend all restrictions on foreign currency inflows into Sri Lanka during COVID - 19 preventive period, defined as the three (3) months commencing 2 April 2020
7.Central Bank appeals for foreign currency deposits from Sri Lankans to boost reserves to aid crisis fight
The Sri Lankan Central Bank invites all Sri Lankans living here and abroad to consider depositing their savings and other foreign-currency funds within the Sri Lankan banking system.This offer is valid from today on for three months (April 2, 2020).
8.Central Bank eases key rates to support ailing economy amidst COVID-19 Pandemic spread
The Central Bank on Monday surprisingly cut the key policy rates by 25 basis points with effect from 17 March and the Statutory Reserve Ratio (SRR) on all rupee deposit liabilities of licensed commercial banks (LCBs) by 100 basis points to support economic activity with the rapid global spread of the COVID-19 pandemic and its possible further spread in Sri Lanka.
9. Sri Lanka Coronavirus arrival ban at airports extended indefinitely
Sri Lanka has extended a ban on arriving passengers at the island’s airports indefinitely, though cargo, departing and transit passengers would continue to be allowed.
- USD/LKR Exchange Rate LKR 220-230/=
- Negative GDP Growth (-2%)
- Hyper Inflation (Introduction of Rs 10,000/= Currency Note)
- Foreign Debt Default (First time in the history)
- Stock Market Crash (Due to sharp decline in Corporate Earnings)
- Public Unrest (Due to non availability of Alcohol and Cigarettes)
- Peanuts, Butter and Jelly
Last edited by Quibit on Tue Apr 07, 2020 5:47 pm; edited 4 times in total